Asked by Ashlee Tennell on May 05, 2024
Verified
Which of the following is a negotiable instrument?
A) "I owe you $100."
B) "I promise to repay the loan of $3,000 only if I succeed in my business."
C) "I promise to pay you the sum of $300 in the next week."
D) "Please pay the bearer the amount of $500."
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.
Loan
A sum of money that is borrowed and is expected to be paid back with interest.
- Gain insight into the conditions that establish the negotiability of an instrument, highlighting the necessity of a set amount and the requirement of payment without conditions.
Verified Answer
JL
Jennifer LobasMay 10, 2024
Final Answer :
D
Explanation :
A simple request to pay as a favor is not sufficient;however,a politely phrased demand,such as "please pay," can meet the requirement.
Learning Objectives
- Gain insight into the conditions that establish the negotiability of an instrument, highlighting the necessity of a set amount and the requirement of payment without conditions.
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